The intellectually glacial Krugman is protesting the posting of his words below by explaining that he didn’t cause the bubble. Uh, that’s not the point (as most grade-schoolers could tell you, Mr. Nobel). The point is that you have no idea what you’re talking about. You clearly advocate producing a housing bubble by the government, yes, as they did. It doesn’t mean you caused it — you’re just a little runt at a failing newspaper who dreams big — it means you recommended the very solution that ruined the economy. Catch up little guy.
To fight this recession the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do that, as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble.
Paul (Einstein) Krugman (August 2002)